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QElvis - I beat you to it! I added GOG and topped up about 1/3rd on GNK. GOG is probably the riskier of the 2 bit the next GOG dividend is assured (it's a final too).
Well as far as I'm concerned, I am going to buy either Gog or gnk next week - possibly some of both - as I am not alone in thinking the markets overreacted to news from both companies. I know gog have a few job's worth type people in minor positions - as do most companies - which doesn't concern me as their management resolved a situation for me in a manner that indicated they treat their customers well and are image conscious. I have taken up an issue with gnk and am waiting to see how it gets handled before investing again because to me that will be indicative of how the company intends to handle any loss of market share to competitors which really will be the crucial factor for the company going forward. BTW could recommend IPA from a tiny micro brewery called Lawman.
That's not really the big issue although no one likes to see revenues decrease. Greene king have cost inflation that will increase 60 million this year. Savings they hope to make from the spirit acquisition is 40-50 million. But courtesy of George Osborne that cost inflation is going going to grow year on year until 2020 with above inflation minimum and living wage increases. The lower pound also boosts cost inflation so suddenly a small drop in sales is a very big thing. It also loooks like they lost some market share to competitors. The price drop is probably overdone but sentiment is against any hospitality industry at the moment. I personally think the companies debts of 2 billion aren't very onerous, but certainly need to come down. Their estate is worth a llot of money so good asset backing in bricks and mortar and cash generation is good. People thought it would be a quick turn around trade with the market overreacting, I'm not so sure.
327 million wiped off the mkt cap.
327 million wiped of the share price for a drop of 1.2% sales decrease. Anyone know what 1.2% equates to in money? Let's remember corporation tax was reduced in April this year from 20 - 19%. Way over sold.
Over 18 weeks and the market reacts as though it's the end of the world....FFS. I bought some more today. The Divi is covered. 1.2% decrease and a 15% so fall.... nonsense guys and gals!
And I'm not the only one who thinks this! http://www.fool.co.uk/investing/2017/09/08/3-high-yield-turnaround-stocks-set-to-beat-the-ftse-100/
I sold up earlier this year which was the right move but cannot believe the trading statement issued today justified this level of fall and think it must have had more to do with this http://www.independent.co.uk/life-style/food-and-drink/ipa-man-boobs-beer-hops-weight-gain-hormones-phytoestrogens-moobs-brewers-droop-a7934306.html Frequent a few of their establishments and one in particular retains my custom because of the food, service and frequent discounts offered to customers not related to the shareholder discount applicable anywhere. Poor weather brings with it Christmas menus and a move from pear and goat's cheese to more hearty menus. I'll be back.
Oh dear, I hope you are right.......but I bought on HL recommendation many months ago and wished I hadn't. I drink lots of their beer, but that's not enough for the BOD to push this company on on my opinion!!
SBB £6.20 that's a big rise from here! Shorters seem to think differently and unless you have a very big house, I think they can manipulate the share price more than your buys will. I am sure it will rise again, but I may have been slightly optimistic looking for £6.00 in the short term. A share to buy now & tuck away?
Lots of interest in this - HL has it as the 3rd most viewed share. Bounce coming soon , lots of people (like me) will be into this once it settles. 15% is already overdone...... IMO. First 1000 bought, another 1000 every -10p from here.
Just bought another 1000 shares on top of the lump I bought this morning.
Hahaha.......hope you don't have a big house! Greene King is now a big company with small expectations. I've been hoping for good things but when Rooney Anand speaks he always seems to disappoint.........today is no exception!!
Will be back to 6.20. Id put the house on it.
Yup, huge selling pressure. Unfortunately
Looks like shorters or sellers think 585p is high enough. There seems sustained selling underway driving the SP down.
Maowombat, I had been in agreement with you and thus made a maiden investment in July. However, I think Deliveroo and the supermarkets must be eating into the turnover. Perhaps the company should consider home delivery of ios Pub Grub. Furthermore I have a nagging doubt that blaiing the weather is a 'the wrong kind of leaves' excuse. It is a bit lazy. There has been a few quite nice days iirc. August 2017 The start of August saw a continuation of the generally westerly flow which had been in place through the second half of July. This brought cloud and rain at times, with only brief intervals of fine weather, and it was mostly cool. It was rather warmer for a time around the 17th to 23rd, and the highest temperatures of the month occurred in south-eastern areas during 27th to 29th which also saw some fine weather. The close of the month saw a return to cooler showery conditions. The provisional UK mean temperature was 14.5 °C, which is 0.4 °C below the 1981-2010 long-term average. Temperatures were near average in Northern Scotland and some eastern coasts, and rather below elsewhere. Rainfall was generally above normal, with more than 150% of average in places, but South Wales, Norfolk and Northumberland were a little drier than average. Sunshine was generally near normal, slightly below in some western areas with the brightest area being north-east England. Nothing too untoward in that summary from the Met Office albeit sticking to August. There seems to be some underlying issues which need addressing rather than lazily balimg the weather. I think Weatherspoons by comparison have had LFL sales up 6% for some of the same period. GNK;s brewing is only marginally down when the sector is performing very poorly.
FK1, I can only see good things for UK PLC in the leisure/ holiday industry. It will become increasingly expensive to holiday in Europe due to the Euro. Caribbean and Florida may not look as rosey following Irma. So more staycations and leisure time spent here in the UK. Greene King / Whitbread and others will benefit from that. Also it will be cheaper for Europe to come to us and eat and drink in our wonderful pubs.
Good call Mao! Even if I say so myself :). My big fear is a second PW followed by a divi cut. That would hammer the shares. The cost savings are providing some insulation and the strong cash generation helps too. There is margin pressure on the Retail and also the Brewing side so the company really will have to milk the herd. It positive to see a strong bounce off the lows. The AGM might also offer a bit more positivity and indication of what measures they will use to tackle the issues around value food. A sliver of hope is the Pub Partner's arm which is performing relatively strongly yet has the highest margins for the company.
I suppose a 10% drop with the uncertainty after this morning's announcement could be expected. So I expect a bounce back over the next few days to £6+ would be fair. As I am writing this, I see that fallingknife has said the same thing. Did not want to be accused of plagiarism.
Quite a depressing initial fall this morning, goes well with the weather today and over the summer I suppose, which has not helped. Could do with more encouragement from the boss, reports do always seem to be dour, sell yourself and the company and product please. Do you ever see any advertising local or national? Remind people that they can enjoy themselves! A build up of shorts to about 4.4% has taken its toll, but if I remember, 10 - 12% a couple of years ago. I think fallingknife is right 600 is a fair start to rebuild today, HSBC have 595 as there target a few days ago!! Today Shore, Liberum and Peel Hunt today retain or reiterate add/buy at far better value. Even Investec who reduced from buy to hold have a target of 667. Total over-reaction on Marstons too, with far fewer shorts in place.
581p now so I think we have soundly bounced off the bottom. Might have another wave of selling but this 12% fall is still overdone. . I think closer to 600p is fair.
FK1, Every little helps....on a wet and miserable day like today, might do the same.
went to Greene King and Hungry Horse and got blootered would that engender the possibility of an "ahead of expectations" RNS in about 8 weeks? Just sayin.
Is the 'other big faller' Nanoco? I sold out of Nanoco at a loss as I am afraid there may be some large dilution there. I did buy GNK at 569 this morning as it is a safer share long term and will still pay a divi.